Stock Market Analysis

Monday, November 23, 2015

Thanksgiving Week...

Welcome to Thanksgiving week! Even though this was supposed to be an American holiday, it has begun to take root all over the world, becoming a festival when people show appreciation to their family, friends and loved ones. The stock market tends to behave during Thanksgiving week the same way it does during Christmas week with light volume and a generally bullish tendency. However, investors were clearly cautious ahead of this year's Thanksgiving due to how active the ISIS has been recently, increasing the risk that they may just strike hard during the holiday weekend, causing the market to slump. Indeed, with the ISIS dying to make a statement, it won't come as a surprise that they might be planning something big for Thanksgiving weekend. If it does, the market may open to a huge surprise next Monday. This might be why the market traded so cautiously and on such light volume today. Both the bonds market and the options market reflected this cautiousness with investors buying into the safety of bonds and options traders trading in favor of put options. As such, its another very uncertain week with plenty of reasons to be bullish and bearish. On the one hand, the recent 30MA rebound and the fact that historically thanksgiving week tend to be positive weeks put the odds to upside. On the other hand, the ISIS global threat was one that was not seen since 911. It was indeed an extremely rare period where both the short term and long term outlook for the market is this uncertain. Even though the general market is so uncertain, certain pockets of opportunities still exist and me and my Master's Stock Options Picks subscribers got into one today and I will report on the outcome.

Market Crash Timer: ORANGE

For now, the market remains in short term bull trend within an intermediate and primary neutral trend.


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